The SEC Delays Decision on Invesco and Galaxy Digital’s Ethereum ETF
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on approving or denying an Ethereum exchange-traded fund (ETF) jointly proposed by Invesco and Galaxy Digital, according to a recent SEC filing. The application for the investment vehicle, which would provide investors with exposure to ETH without requiring them to buy and store the digital asset themselves, was filed in September of last year.
Analysts Predict an Approval for ETH ETF by May
Following the approval of 10 Bitcoin ETFs in January, analysts, including those at Standard Chartered bank, believe that an Ethereum ETF will likely receive approval from the SEC. They argue that since the regulator has not classified ETH as a security but has targeted companies selling unregulated securities, the path is clear for an ETH ETF. However, the SEC has been consistently delaying decisions on spot ETH ETF applications from prominent firms like BlackRock and Fidelity.
ETFs Provide Access to Cryptocurrencies for Traditional Investors
ETFs offer a way for traditional investors to access the complex world of cryptocurrencies. These investment vehicles handle the storage of digital coins or tokens, allowing investors to simply purchase shares that mirror the price of the underlying asset. With the recent approval of Bitcoin ETFs, there is anticipation that an Ethereum ETF may soon follow suit.
Hot Take: The SEC’s Cautious Approach Continues
The SEC’s decision to delay the approval of Invesco and Galaxy Digital’s Ethereum ETF demonstrates its ongoing cautious approach towards cryptocurrency-related investment products. While Bitcoin ETFs have gained regulatory approval, it seems that the SEC is taking additional time to assess Ethereum-based offerings. This delay highlights the importance of regulatory clarity in the crypto space, as market participants eagerly await the arrival of an ETH ETF.
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